EasyJet is operating in the industry where there is a possibility for large number of competitors with the firm already facing a stiff Easyjet case analysis from Ryanair. In case of EasyJet, the value proposition can be rare as differentiating between services is quite difficult.
However, the main problem for Easyjet case analysis value aspect arises in differentiating the product from rival companies. EasyJet focuses on increasing and maintaining its customer base by accommodating them in selection of flights. EasyJet is operating in the industry, which is very sensitive, and the scrutiny of regulatory authorities and government is very high.
Not only that the focus on consumer satisfaction is also rare, but with the culture of increasing consumer satisfaction spreading there would be stiff competition in the near future.
The company also focuses on creating consumer satisfaction to enhance its internal and external value. The rarity aspect pertaining to the firms include the fact that the low cost business model structure of the firm is quite rare.
The economic conditions also have a great impact on the profitability of EasyJet; the rise in the prices of fuel can affect the profitability of EasyJet, as they have to invest more in the working capital.
The low price model is of value to customers, which means that involvement of more and more customers would increase the value of the company itself. The environmental factor is also very important for EasyJet; the operations of airlines have very adverse consequences on the natural environment, which is enforcing the customers to reduce the air traveling as low as possible.
However, the main difficulty for customer arises in replicating brand loyalty, which is very difficult.
This policy has not only created a strong case in favor of the company but has also created a strong market for the firm enabling it to face the competition by gaining advantage over them through consumer loyalty. It can gain advantage over other businesses while employing low cost model.
For success of any firm, consumer loyalty is an important factor in the recent era, particularly for the firms operating in service providing industry……………… This is just a sample partial case solution. In case of EasyJet differentiating its services from other competitors would be difficult because of sudden startups of other low cost business organizations.
The airline focuses on all sorts of customers and in any point of travelling from a pre-booked customer to the last minute haggler. Value Chain Analysis Value chain pertains to the sequences of value additions made by a company to gain competitive advantage over its competitors.
On the other hand, value proposition is easily replicated particularly in the service sector, since it is difficult to replicate services.
The value factor of these three core areas is one of highly advanced business structure, meaning that it is one of the valuable business models effective in gaining and maintaining customers.
Lastly the organizational aspect pertains to the capability of the company to survive. Failure to comply with these regulations can result in the huge cash outflows in terms of fines and penalties, failure to comply with important regulation can threaten the going concern status of the company as well because the operating license could be revoked by the authority.
The management can achieve significant savings in the fuel costs as the advance planes consumes less fuel, the traveling time could also be reducing which again have very positive implication on the profitability and reputation of the Easy Jet.
In addition to this, the compliance can also be greatly ensuring by the management as the chances of damage to the plane during flight time will be reduced and the maintenance and overhauling cost will also be substantially lower as well. Many of the tourists tends to avoid traveling as the inflation is higher in those periods, and the business traveling is also reduced because many of the organization focuses heavily on the cost-cutting activities.
This is another critical factor for EasyJet; if the planes of EasyJet are technologically advance, they can attract more customers. VRIO Analysis VRIO model revolves around compatibility of the four forces namely Value, Rarity, Inimitability and Organization, with the business strategy of the firm which revolves around the low cost model, high consumer loyalty and value proposition.
Any damage to the natural environment can affect the reputation of EasyJet drastically, which will ultimately reduce the profitability of the company.An assignment on case analysis. Submitted To Sadia Afroze Associate professor Dept of Accounting & Information Systems University of Dhaka Submitted By Name5/5(2).
In case of EasyJet, the value proposition can be rare as differentiating between services is quite difficult. In imitability is the concept where the ability of competitors and new businesses is tested in replicating the business structure of the firm.
The PESTEL analysis of EasyJet airlines shown in figure 1 suggests that all the external factors were favourable for EasyJet which contributed to its corporate success. Also in the industry lifecycle EasyJet is in the growth phase where it can increase sales, reduce costs and make profit.
Case Study Analysis. easyJet STRENGTHS: > CASE STUDY: > billsimas.com fleet of planes to gain larger profit,thus exposing itself to horrendous situation of large cancellations and delays in case of slack or technical problem in any plane. An analysis of Ryanair, easyjet and British Airways based on porter’s generic marketing strategies and estimating.
Easy Jet Case Study Management Marketing Essay. Print Reference this. Published Present Position and Industry Analysis: The easyJet holds a very high esteemed position in the market of Air travel industry.
As they have mentioned in their case that the Swiss company was about to stop their operations there hence it seems likely that. We will write a custom essay sample on Easyjet Case Analysis specifically for you for only $ $/page.Download